Togo Rental Income Guide 2026

Overview — Rental Income Tax in Togo

Rental income from immovable property (land and buildings) is chargeable to income tax in Togo under the category of Revenus Fonciers. Unlike wage income, rental income does not benefit from the 20% professional deduction. The net rental income (after allowable expenses) is aggregated with the taxpayer's other income and taxed under the progressive IRPP brackets (0–40%). Landlords with rental income below XOF 5,000,000 per year may opt for a simplified tax regime, which applies a flat rate (typically 20%) on gross rental income. The tenant may be required to withhold 10% of the rent as a withholding tax if the landlord is non-resident or fails to provide a tax clearance certificate.

Net Rental Income Calculation

Rental income is computed on a net basis: Gross rental income received during the calendar year minus allowable deductions. Allowable deductions include:

• Repairs & maintenance — costs of maintaining the property (not capital improvements)
• Property management fees — fees paid to licensed property managers or agencies
• Insurance premiums — building, fire, and liability insurance
• Mortgage interest — interest on loans used to acquire, build, or improve the property
• Taxe Foncière — annual property tax paid to DGI
• Notary & legal fees — costs related to lease agreements and tenant disputes
• Depreciation — systematic depreciation of the building (at 5% per annum straight-line)

Capital improvements (e.g., adding a room, installing a new roof) are not immediately deductible but are added to the cost base for depreciation or CGT purposes. Expenses must be properly documented with receipts and invoices. The net rental income is then added to other income for IRPP computation.

Simplified Regime for Small Landlords

Landlords with annual gross rental income below XOF 5,000,000 may opt for the simplified tax regime (Régime du Réel Simplifié). Under this regime, the landlord pays a flat tax of 20% on gross rental income, replacing the progressive IRPP on rental income. The simplified regime does not allow deductions for expenses. The option must be exercised at the time of filing the annual return and applies for at least 3 years once elected. The simplified regime reduces compliance costs for small landlords who do not wish to maintain detailed expense records.

Vacant Property & Short-Term Rentals

Rental income is only taxable when the property is actually let. There is no deemed rental income for vacant or owner-occupied properties. However, the Taxe Foncière continues to apply regardless of occupancy. For short-term rentals (seasonal lettings, Airbnb-type arrangements), the rental income is taxable under the same rules as long-term lettings. The gross rental amount received per night or week is aggregated annually and taxed under IRPP. Short-term rental platforms may be required to report income to DGI under emerging digital economy reporting rules.

FAQs

Do I need to declare rental income if I only rent out one room in my home?

Yes, rental income from even a single room is taxable. However, you may deduct a proportional share of your housing costs (utilities, Taxe Foncière, insurance) based on the percentage of the property used for rental.

What if my tenant pays rent in advance for multiple years?

Rental income is taxable in the year it is received, regardless of the period it covers. If you receive 3 years' rent upfront, the full amount is taxable in that year.

Can I offset rental losses against my salary income?

Yes, rental losses (where allowable expenses exceed rental income) can generally be offset against other income in the same year, reducing overall IRPP. Unrelieved losses may be carried forward for up to 5 years.

Disclaimer

This guide provides general information about Togolese rental income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Togolese tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.